All Permalinks broken since 3.2.1

I had to manually update to 3.2.1 which I’ve done before, nothing new. But now, my homepage shows up and all permalinks are broken. I tried changing the permalink structure, but it tells me my web.config is not writable and I need to manually create on with the proper code in it. Godaddy also doesn’t allow me to make the root directory writable, so wp can’t auto generate it for me I guess.

I did that, and I get the same result. Each post shows up as “No input file specified.” I’ve even made sure I’ve upgraded PHP in godaddy…nothing.

If I switch permalinks to default, it works, except all of the old /%postname% permalinks don’t work.

Any idea how to get the /%postname% links to work again?